American Airlines shares fell over 5% after cutting profit forecast due to failed sales strategy

From CNBC: 2024-07-25 08:53:20

American Airlines shares dropped over 5% in premarket trading after cutting profit forecast due to failed sales strategy and industry-wide flight surplus. Estimated earnings adjusted at 70 cents to $1.30 per share, down from initial forecast. Unit revenue expected to decrease up to 4.5% in third quarter.

Southwest Airlines saw profit decline 46% in second quarter to $717 million, as revenues rose 2% to $14.33 billion. Earnings per share at $1.09 after adjustments. Southwest also reported a profit drop, taking “urgent” steps to boost revenue. American Airlines CEO stated reevaluation of sales strategy after unmet expectations.



Read more at CNBC:: American Airlines (AAL) earnings Q2 2024